Most homebuyers know that they need to schedule a property inspection in between getting an offer accepted and closing on the property. But as a seller, are you aware of the importance and need for having a pre-listing inspection done on your property? It’s one of the best ways to gain and advantage in your negotiations with prospective buyers.
What is a Pre-Listing Inspection?
You might not realize that pre-listing inspections are a thing, but they’re actually becoming quite popular across all segments of the market.
As Realtor Magazine explains, “A pre-listing inspection focuses on proper functionality of all major systems and components of the house: heating and cooling; electrical; plumbing; roof and structure; siding; and doors and windows. It’s a full inspection for the seller to better understand the condition of their home prior to the buyer’s inspection.”
Armed with this information, a seller ends up in a stronger position to attract the best possible offers.
5 Benefits of Getting a Pre-Listing Inspection
While a pre-listing inspection will cost you a few hundred bucks, it’s money well spent. Here are some reasons why:
- Chance to Do Repairs in Advance
You don’t need to fix everything when selling a house. (Reasonable buyers understand that they’re not purchasing brand new construction.) But a pre-listing inspection allows you to address any major issues ahead of time, like with the exterior of the home for example. If the inspection were to identify a little hole in the roof of the home, then you would simply check this website to find someone to come and fix it – the same goes for other issues that may be found within the home.
A thorough checking of the interior could help you with fixing plumbing and electrical issues. You can organize an EICR Test to be carried out to check the safety of the electricity in the building. As you know, it is preferable to double check the functionalities of the house before putting it out for selling. If you find any troubles regarding plumbing, contact a trustworthy service provider to fix it. For example, I Need The Plumber & AC (and similar providers) could help you with the aforesaid issues. This reduces the likelihood that a buyer would walk away during the due diligence phase.
If nothing else, it gives you some additional clarity and insight. As Green Residential explains, “[A pre-listing inspection provides] a knowledge of deficiencies, which can allow you to get estimates for repairs.”
Either way – whether you choose to do the repairs or simply get estimates for what the work would cost – this advanced insight will help you make wise decisions.
- Selling Point
You can actually use the fact that you had a pre-listing inspection as a selling point – particularly if it came back fairly clean.
You can say something in the listing like, “Just had a pre-listing inspection from a certified home inspector and no issues found with any of the home’s major systems! All minor issues already remediated.”
Your buyer will probably still order their own inspection, but this puts people at ease and makes them more likely to put in an offer.
- Greater Leverage
A pre-listing inspection provides a clearer and more comprehensive picture of your property’s condition, which is invaluable when it comes to pricing your home competitively. Understanding the home’s strengths and weaknesses allows you to set a realistic price that aligns with its true value. When paired with local market data and comparable home sales (comps), this insight enables you to arrive at a highly accurate price point that appeals to buyers while ensuring you get the most for your property.
The pre-listing inspection also allows you and your agent to strategize effectively. Together with the home inspector, you can identify necessary repairs and factor those into your pricing plan. For example, you might choose to complete certain repairs to boost the home’s market appeal or adjust the price accordingly to reflect the work that needs to be done. Either approach demonstrates transparency and can help your property stand out in a competitive market.
Additionally, having a pre-listing inspection gives you a distinct advantage during negotiations with prospective buyers. By already knowing the repairs likely to be flagged during the buyer’s inspection, you eliminate the element of surprise and put yourself in control.
Buyers appreciate sellers who are upfront about the condition of the property, and this can create a sense of trust, ultimately smoothing the negotiation process. Being two steps ahead in this way not only strengthens your leverage but can also lead to faster offers and a more streamlined closing process.
- Speeds Up the Process
One of the more frustrating aspects of selling a house-or buying one, for that matter-is the length of time it can take to move from having an offer accepted to officially closing the deal. Delays can arise from unexpected issues uncovered during the buyer’s inspection, leading to renegotiations, repairs, or even the risk of the sale falling through.
This is where a pre-listing home inspection can make a significant difference. By arranging an inspection before putting your house on the market, you have the opportunity to identify and address any major issues, such as a leaky roof, outdated wiring, or plumbing problems. Fixing these in advance prevents them from becoming sticking points during negotiations.
Moreover, a pre-listing inspection also helps uncover smaller concerns that could otherwise accumulate into a laundry list of fixes requested by buyers. Taking care of these details ahead of time shows potential buyers that the property has been well-maintained, giving them greater confidence in their purchase.
The result? A faster and more efficient closing process. With fewer surprises and less back-and-forth negotiation, both parties can proceed smoothly, saving time, reducing stress, and ensuring a more seamless transaction overall.
- Gain Credibility and Trust
Trust plays a huge role in a smooth sales process. Buying a home is a massive investment for a buyer and the last thing they want to do is work with a shady seller who seems like they’re hiding important information. By getting a pre-listing inspection, you’re basically telling the buyers that you’re an open book.
“Anything that a seller can do to gain the trust of buyers is an advantage over sellers who do not do this, because buyers want to feel safe and secure in their decision to purchase your home,” Spectora mentions.
Once you have a buyer’s trust, everything else goes much smoother.
Maximize Your ROI
When selling a property, the objective is always to maximize the rate of return. And though a pre-listing inspection increases your expenses as a seller, it almost always provides an exponentially higher return at closing. So do yourself a favor and schedule one prior to sticking that for-sale sign in your freshly mowed lawn.
